MEDICAL care is an area that Malaysians have overlooked, with Bank Negara Malaysia statistics showing only 15 per cent having some form of medical insurance.
Most only start thinking of getting medical insurance when they are in their late 40s and 50s, by which time, it could be too late.
"If they have not bought medical insurance earlier, half the population will not be entitled to medical coverage by the time they retire because of their chronic illnesses," says certified financial planner Clarence Jacob Chua.
He says with the cost of healthcare increasing by an average of between eight and 10 per cent a year, more and more Malaysians may not be able to afford medical treatment when they need it the most.
"Take cancer, for example. The latest drug in the market costs about RM8,000 per session. Not many can afford it but when you are desperate for the best treatment, you will try to get the drug even if you are going to get into debt."
Many people also have a false sense of security when they enjoy medical benefits from their employer.
"But what happens when they retire? They will have to pay higher premiums for medical insurance and some may not be healthy enough to qualify."
Many also mistakenly believe that all their medical bills will be taken care of by their employer.
"But this is not always the case, especially if you suffer from a serious chronic ailment," says Chua.
He relates the case of a client who had to undergo a major operation which cost him RM170,000 at a leading private hospital.
"As his company's medical coverage was only up to RM50,000, he had to settle the balance from his pocket."
Most only start thinking of getting medical insurance when they are in their late 40s and 50s, by which time, it could be too late.
"If they have not bought medical insurance earlier, half the population will not be entitled to medical coverage by the time they retire because of their chronic illnesses," says certified financial planner Clarence Jacob Chua.
He says with the cost of healthcare increasing by an average of between eight and 10 per cent a year, more and more Malaysians may not be able to afford medical treatment when they need it the most.
"Take cancer, for example. The latest drug in the market costs about RM8,000 per session. Not many can afford it but when you are desperate for the best treatment, you will try to get the drug even if you are going to get into debt."
Many people also have a false sense of security when they enjoy medical benefits from their employer.
"But what happens when they retire? They will have to pay higher premiums for medical insurance and some may not be healthy enough to qualify."
Many also mistakenly believe that all their medical bills will be taken care of by their employer.
"But this is not always the case, especially if you suffer from a serious chronic ailment," says Chua.
He relates the case of a client who had to undergo a major operation which cost him RM170,000 at a leading private hospital.
"As his company's medical coverage was only up to RM50,000, he had to settle the balance from his pocket."
Chua says it's best to buy medical insurance as early as possible as the premiums become much more expensive as one grows older.
Source: NST, Dec 12, 2010
KNOW YOUR RIGHTS
As a policy holder, you have the right to know what your insurance policy covers you for, and what it does not. Do you know what your annual limit is? Are you sitting on a policy with timebombs? Like your company’s Group Medical Plan, your own personal policies may have loopholes and limitations. With more and more Malaysians getting into medical debt, don’t wait until you have to make a claim to find out what your limitations are.
Get your policies reviewed (at no cost) by a certified financial advisor before it is too late. Call Hafez 012 2918003.
